Ongoing red alert levels in New Zealand have pushed the retail sector into a deep financial crisis testing confidence, says Retail NZ. 

Falling foot traffic and sales have prompted 59 per cent of retailers responding to a Retail NZ survey to say they fear they may not survive the next 12 months. 

This includes 37 per cent who said their businesses were on a knife’s edge and 22 per cent likely to cease trading. 

“On average, our members are reporting that sales are down by 32 per cent nationally, but a third of retailers are down by more than 40 per cent,” said Greg Harford, Retail NZ chief executive. 

“This is not sustainable for the retail sector, and we have asked the government to take urgent steps to reintroduce the wage subsidy and the Resurgence Support Payment.

If the government fails to provide support, Harford notes that 76 per cent of retailers will reduce operating hours in order to manage the wage bill, while 32 per cent will make their staff redundant. Also, 16 per cent of businesses indicate they will simply close the doors permanently.